Ray Corporation has two products in its ending inventory, each accounted for at thelower of cost or market. A profit margin of 30% on selling price is considered normalfor each product. Specific data with respect to each product follows:Product #2$ 18Product #1Historical cost$10Replacement cost1114Estimated cost to disposeEstimated selling price2033In pricing its ending inventory using the lower-of-cost-or-market, what unit values,rounded to the nearest dollar, should Oslo use for products #1 and #2, respectively?Example of Answer: 4000 (No comma, space, decimal point, or $ sign)Product 1 =Product 2 =

The question is related to Valuation of Inventories. The Inventory Should be Valued at lower of…

Ray Corporation has two products in its ending inventory, each accounted for at the lower of cost or market. A profit margin of 30% on selling price is considered normal for each product. Specific data with respect to each product follows: Product #1 $10 Product #2 $ 18 Historical cost 14 Replacement cost Estimated cost to dispose 11 Estimated selling price 20 33 In pricing its ending inventory using the lower-of-cost-or-market, what unit values, rounded to the nearest dollar, should Oslo use for products #1 and # 2, respectively? Example of Answer: 4000 (No comma, space, decimal point, or $ sign) Product 1 = Product 2 =

Ray Corporation has two products in its ending inventory, each accounted for at the lower of cost or market. A profit margin of 30% on selling price is considered normal for each product. Specific data with respect to each product follows: Product #1 $10 Product #2 $ 18 Historical cost 14 Replacement cost Estimated cost to dispose 11 Estimated selling price 20 33 In pricing its ending inventory using the lower-of-cost-or-market, what unit values, rounded to the nearest dollar, should Oslo use for products #1 and # 2, respectively? Example of Answer: 4000 (No comma, space, decimal point, or $ sign) Product 1 = Product 2 =

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Calculate the Lower-of-Cost-or-Market using the table below for Samson Goods, Inc. springs inventory. (1) Complete the table. Part # Cost Replacement Cost Net Realizable Value Normal Profit NRV less Normal Profit LCM SP17G $181,000 $ 152,000 $151,000 $15,000 SP23X 254,000 249,800 262,500 25,800 SP78A 205,400 214,000 206,000 10,200 Total (2) Prepare the journal entry to record the Allowance to Reduce Inventory to Market using the "Loss Method". $ $ (Record the adjustment to inventory due to decline in value)
Income is to be evaluated under four different situations as follows: a. Prices are rising: (1) Situation A: FIFO is used. (2) Situation B: LIFO is used. b. Prices are falling: (1) Situation C: FIFO is used. (2) Situation D: LIFO is used. The basic data common to all four situations are sales, 520 units for $20,800; beginning inventory, 290 units; purchases, 410 units; ending inventory, 180 units; and operating expenses, $3,500. The income tax rate is 40%. Required: 1. Complete the following tabulation for each situation. In Situations A and B (prices rising), assume the following: beginning inventory, 290 units at $10 = $2,900; purchases, 410 units at $12 = $4,920. In Situations C and D (prices falling), assume the opposite; that is, beginning inventory, 290 units at $12 = $3,480; purchases, 410 units at $10 = $4,100. Use periodic inventory procedures. 2. Complete the following sentence: 3. Complete the following sentence regarding the relative effects on the cash position for each…
Please answer me
n The inventory of Royal Decking consisted of five products. Information about ending inventory is as follows: Product A B C D E Product Cost $ 58 98 ADCOE 58 118 А 38 Selling costs consist of a sales commission equal to 15% of selling price and shipping costs equal to 5% of cost. The normal profit is 40% of selling price. Per Unit Replacement Cost Required: What unit value should Royal Decking use for each of its products when applying the lower of cost or market (LCM) rule to units of ending inventory? Note: Do not round intermediate calculations. Round final answers to 2 decimal places. $ 53 88 73 88 46 Cost Replacement. cost Selling Price $ 78 118 98 148 48 $ 58 $ 98 58 118 38 53 88 73 88 46 NRV NRV minus NP Market Per Unit Inventory. Value
Current Attempt in Progress Lee Enterprises reports the following information: Net income Depreciation expense Increase in accounts payable Increase in accounts receivable $5180000 $3979520. $5180000. $6380480. $5706480. 704480 159000 337000 Lee should report cash provided by operating activities of
Sheridan Inc. has selected specific identification as its inventory costing method. At December 31, 2025, it has the following information for its finished goods: \table[[Replacement value,$5980
EFG Co. has 600 units in inventory that had been purchased for $22 each and that would currently cost $25 to replace. The supplier has just informed EFG Co. that the cost of these goods is rising to $28.50. A. EFG Co. should adjust the inventory account using the most relevant market values, which is $28.50. B. EFG Co. should make no adjustments to the inventory account C. EFG Co. should adjust the inventory account using the lower of the recent market values, which is $25. D. EFG Co. should adjust the inventory account using the average cost and market values, which is $25.17.
21. A company has two pieces of Inventory, A and B. Inventory A cost the company P40 per unit and can now be sold for P60 per unit after incurring P15 in selling expenses per unit. It has a replacement cost of P35 per unit and a normal profit of P4 per unit. Inventory B cost the company P52 per unit and can now be sold for P63 per unit after the incurring P15 in selling expenses per unit and a normal profit of P4 per unit. If the company uses the retail method to value its inventory, how much should be reported on the balance sheet for these items? a. 90 b. 89 c. 86 d. 88 D00 000
san
M3
A company's normal selling price for its product is $26 per unit. However, due to market competition, the selling price has fallen to $21 per unit. This company's current FIFO inventory consists of 260 units purchased at $22 per unit. Net realizable value has fallen to $19 per unit. Calculate the value of this company's inventory at the lower of cost or market. Multiple Choice $4,890. $5,720. $5,040. $5,460. $4.940.
A3